Pretty sure your problem was from the wood overlay failing first. I had that happen when I tried edge grain wood for overlays. I now use the toughest wood I have for overlays, which is burl wood, this stuff is like iron.
I make my overlays 2 1/4" long and graceful.
One time I had one fail from what appeared to be a bad glue job by me. One side became unglued and chipped off which put too much strain on the glued side which split it off along with 8" of the back of one limb.
I threw my failure bow into a corner for years but just got around to fixing it with a radical overlay a few months ago. Shoots great.